Regulators Banned A $40 Million Dollar Fund From Using This – But You May Be Able To!
A friend just dropped a bomb shell on me and I would love to get your feedback.
It’s about a strategy that one of the largest brokerage firms in the world invested three years and millions of dollars to develop.
Then they used it to managed over 40 million dollars (until Regulators stepped in) and told them it gave them an unfair advantage over their clients and it was a conflict of interest.
They were banned from using it, which they weren’t happy about, because they were making a KILLING with it…
The strategy has been sitting on a shelf ever since (with the exception of the developer using it for his own money).
This banned strategy is based on the HUGE ugly FOREX truth hiding in plain sight – which is that retail traders, over time, consistently lose. Not everyone, of course. But the VAST MAJORITY of traders with smaller accounts (under 1 million) lose.
The stats on this are shocking.
According to a study conducted by AMF (French regulator) 89.3% of all FOREX traders lose 100% of their money over a 4 year period!
Wow – that’s big! So common sense tells us if we can do the opposite of what the retail traders are doing as a group, then we will make money as often as they lose money. That is the premise of this entire strategy.
But the only way this works is if you have access to the data on what the millions of retail traders are actually doing at any given moment. This data is being sold to a number of hedge funds for approximately $1 Million dollars a year!
The good news is that I am getting access to this data for much less, and by chance I was introduced to the person who controlled the strategy used on this 40 million dollar fund. Since the fund was shut down by the NFA, he is leveraging the data (which is aggregated from numerous brokers) and is killing it on his own trading account.
So basically this strategy looks at retail trader “sentiment” and does the exact opposite, and makes BIG money on autopilot.
Since the fund was shut down, my friend has been running this strategy on his own account for five years. His account is up over 300% in that time with a max drawdown of 25%.
Furthermore, his account was audited by a 3rd party firm, and they validated these stellar results – so it’s official long-term results using his own money.
And since the audit, he’s added another 40%! Check out the stats below going back to October 2010!
So my question for you is. . .
What questions or concerns come to mind for you? Objections? Ideas? Drawbacks? Risks?
What popped into your head when you read about the strategy above?
I am actively asking for your feedback, so please leave your thoughts below, and I will reply and keep you updated over the next few weeks.
I am putting together a follow up article complete with the stats from his live account as well. I hope to have it polished up and published for your reading pleasure in a few days.
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Happy trading my friends…
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